User-generated Content Trusted Seven Times Better than Traditional Ads

  • Wednesday, November 30th, 2016
  • Author: Tim Maytom
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nyx cosmetics campaignA new report has revealed that consumers are seven times more likely to trust user-generated content from social media than traditional advertising, findings that could have massive implications for brands seeking to build trust and engagement among consumers.

The report from earned content platform Olapic surveyed over 4,500 active social media users aged between 16 and 49 from the UK, US, France, Spain, Germany and Sweden. Among UK respondents (of which there were 1,000), the study found that only six per cent trusted traditional advertising, while over three quarters preferred to look at user-generated content.

The study also found that trust has a significant impact on click-through rates and sales, with 56 per cent of respondents more likely to click on an ad that features user-generated imagery, and the same amount more inclined to buy products featured in such advertising.

“These figures send a strong message to brands about how they should engage with consumers,” said José de Cabo, co-founder of Olapic. “Social media brings streams of authentic images to consumers fingertips, transforming how they see products and interact with brands.

“Todays low levels of trust in traditional advertising suggest that consumers are seeking a more honest dialogue with brands and marketers. In order for brands to increase engagement and sales, theyll need to adapt to this changing landscape and communicate with consumers in the authentic visual language they crave.”

User-generated content seems particularly popular among UK audiences, with 35 per cent of surveyed Britons interested in looking at social media photos while researching purchases, and a further 24 per cent looking for social images while in the process of purchasing.

This tend is particularly pronounced in the fashion industry, which has seen heightened consumer backlash against rampant Photoshopping of models in campaigns. 38 per cent of Britons said they seek out ads featuring real people before making a purchase in fashion.

Brits are also happy to provide content for such campaigns. 48 per cent of British respondents had uploaded photos featuring a brands hashtag, a figure which rose to 57 per cent among millennials. Among those who had done so, 86 per cent said they uploaded content simply because they enjoyed the product, rather than motivated by social media contests or other promotions.

Brands have begun to take note of these trends, using social media campaigns with hashtags to generate a wealth of images that can be easily browsed by consumers. A campaign by cosmetics brand NYX found that customers who interacted with user-generated content had a 93 per cent high average order value, and a 320 per cent higher conversion rate.

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